Question: Any initial direct costs incurred by the lessor for a sales-type lease should be Group of answer choices directly charged (debited) to Retained Earnings. expensed

Any initial direct costs incurred by the lessor for a sales-type lease should be Group of answer choices directly charged (debited) to Retained Earnings. expensed in the same period that the lease receivable is recognized. deferred and recognized as a reduction in the interest rate implicit in the lease. recorded as a prepaid asset and allocated to expense over the lease term

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